Why Divorce Mediation Costs Less

Divorce is expensive, and the resulting aftermath can devastate a family over a long period of time. Mediation minimizes this expense and the continuing aftershocks of the initial destruction.

Some of the costs associated with divorce are:

o Attorney fees/mediator fees

o Lost time from work/loss of work/lost opportunity

o Stress/illness/psychological trauma

or Child Trauma

ATTORNEY’S FEES / MEDIATOR’S FEES

Divorces where financial issues or the children’s living arrangements are in dispute often cost more than $25,000 per spouse. Cases involving a complicated property division or support issues can exceed fifty thousand dollars per spouse. These cases can take two to three years to reach the courts.

By contrast, these same types of cases often have a combined total cost to both spouses of less than $10,000 in mediation and attorneys’ fees when divorcing couples choose to go to mediation rather than pursue court action. The time required to finalize a mediated divorce is usually less than six months.

Mediated divorces usually cost less, although the hourly rate for mediators is often similar to the hourly rate attorneys charge. The cost is lower because the time required by the mediator and attorneys in a mediated divorce is substantially less than the time required by two separate attorneys to proceed with a divorce through the court system.

This is partly due to the fact that a lot of time and money in attorneys’ fees is used, during the initial stages of the divorce process, to litigate secondary issues, in order to pretense and intimidate. Clients often find themselves going to court numerous times to litigate various issues that are of very little importance to the final outcome of their case.

For example, one of the spouses can request the intervention of the court to order the other spouse to pay certain expenses, on a temporary basis, or to determine who has the right to reside in the home during the divorce proceedings. These are often two highly contentious issues in which each of the opposing attorneys seeks to gain a psychological advantage over the other by “winning” a favorable decision early in the litigation.

In addition, problems related to the fact that one of the parties does not present the necessary documents or answer certain questions can tie up a divorce case for two or three years. This rarely happens during the mediation process because the agreement to mediate includes an agreement to provide all documents and information requested by the mediator. Refusal to do so will terminate the mediation.

Unfortunately, one of the most widely used tactics to litigate these temporary or peripheral matters is the defamation of the opposing spouse during court appearances. Once this begins, clients are willing to continue funding their lawyers to protect them from what they perceive to be a potentially devastating outcome.

Another factor that leads to lengthy/expensive divorce litigation is the conflict of interest between the client and the attorney. Most attorneys require substantial advances ($5-10,000) before starting a case, as well as replacement advances as the case progresses. The attorney then collects an hourly rate that is credited against the retainer. If the attorney establishes the case, the attorney is required to return any unused portion of the advance to the client. The longer it takes to resolve any divorce case, the more money the attorney earns.

Brokers generally operate under a different type of financial structure. They make money by working with a larger number of clients for shorter periods of time. A good mediator earns a reputation for helping clients quickly reach a resolution of their divorce issues. Some mediators will further limit clients’ financial exposure and fear increased costs by charging a flat fee for preparing all paperwork once clients have reached an agreement.

Once the paperwork has been completed, mediation clients are encouraged to take the divorce papers to separate “consulting” attorneys for review. These documents should include the divorce agreement, as well as all financial supporting materials, such as recent retirement account and bank statements, appraisals, mortgage balance statements, and tax returns.

The consulting attorney will usually charge just a couple of hours (not a substantial retainer) to review the divorce papers. The net result is less time spent by everyone and less money spent by the customer.

TIME LOST FROM JOB/JOB LOSS/LOSS OF OPPORTUNITY

The time commitment required to prepare for and attend court proceedings depletes available time, energy, and resources that could be used to improve each spouse’s job performance or pursue financial opportunities.

The stress of a contested divorce can be so debilitating that disputing spouses are often unable to perform their jobs with even a minimal level of proficiency. As a result, it’s not uncommon for people going through divorces to lose their jobs or experience business bankruptcies.

Mediation saves time, emotional energy, and financial resources, and allows spouses to move forward without having to recover from the destructive side effects experienced during court proceedings.

STRESS/ILLNESS/PSYCHOLOGICAL TRAUMA

It is also not unusual for a person to become seriously ill while going through a divorce. The fear of the unknown, the psychological trauma that results from experiencing the other spouse’s behavior (both inside and outside of the courtroom), and the need to deal with parent-child relationship issues can be overwhelming.

Mediation brings financial and parenting issues to light so that they can be addressed and resolved through cooperation. Although each spouse may not get the exact outcome he thinks he wants, he does get a resolution, and with that resolution comes the opportunity to move on and rebuild.

Nothing can be more difficult than encountering the unknown and experiencing the feeling of helplessness associated with the inability to navigate to the other side. Mediation provides the tools to get through a divorce without leaving a trail of devastation.

TRAUMA FOR CHILDREN

One of the strongest reasons to mediate is to protect your children. It’s hard enough for children to adjust to the reality that the family they trusted to continue to exist is falling apart. Children look to their parents for guidance and help in understanding what is going on at home.

Children who experience parents who treat each other with respect and who are also able to remain available for their children and other responsibilities, even during a divorce, are more likely to model that behavior and perceive the world in a more positive light.

Mediation allows couples to maintain their integrity and continue to present themselves to their children as the kind of parents who would be proud to see their children convert.